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NAB data crunch shows strong SMSF performance

NAB commissioned data on the performance of self-managed super funds (SMSFs) shows that they have outperformed the rest of the super industry in recent years.

The findings are the result of NAB commissioning Rice Warner to crunch APRA numbers on the super industry with the recent ATO statistics monitoring SMSFs.

The results show that SMSFs outperformed the rest of the superannuation industry, specifically during the period 2005 to 2012, where the sector excelled over the rest in six of eight years – outlined in the table below.

The cumulative SMSF outperformance over this period is significant – an average annual return of 7.7% for SMSFs vs. 4.9% for the rest of the superannuation industry (or net fees, 6.8% for SMSFs versus 4.1% for the rest of superannuation).

Table 1. Average Return – APRA Regulated Funds vs. SMSFs

Year end 30 June

APRA

SMSF

APRA

SMSF

(gross)

(gross)

(net)

(net)

2005

13.2%

17.3%

12.4%

15.6%

2006

14.0%

15.9%

13.2%

14.2%

2007

15.6%

20.0%

14.9%

18.1%

2008

-7.6%

-4.0%

-8.3%

-4.4%

2009

-11.9%

-4.5%

-12.6%

-4.9%

2010

9.8%

8.3%

9.0%

7.9%

2011

8.7%

11.3%

7.9%

10.9%

2012

1.0%

0.2%

0.0%

-0.2%

8 year average

4.9%

7.7%

4.1%

6.8%

 

Value of $500,000 invested at the beginning of 2005 Financial year*

APRA

SMSF

APRA

SMSF

(gross)

(gross)

(net)

(net)

Value

732,259

904,975

690,100

845,571

*Assuming zero contributions, withdrawals or any other transactions

NAB’s EGM of Banking and Wealth Solutions, David Gall, said while SMSFs were not for everyone, more people were taking the ‘do-it-yourself’ option.

“We know now that, not only have more than a million Australians chosen to manage their own retirement savings, they’re actually doing a particularly good job of it,” Mr Gall said.

“According to this comparison of ATO and APRA data, during the period of 2005 to 2012, the SMSF sector outperformed the rest of the superannuation industry in six of the those eight years.”

“It is clear that SMSFs do rate very well in terms of performance against the other funds, contrary to some perceptions out there.”

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